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Determining factors for the choice of software

Among the existing accounting software, some are designed for large businesses and others for small businesses. You will also find best invoicing software for small business that is better suited to trading activities rather than production activities. Therefore, the sector of activity of the company is also an important point that should not be overlooked.

Activity area

It should be noted that depending on the activity of the company, the need for accounting software is not the same. We can distinguish different types of software:

Accounting software specific to a trade: this is the case with software adapted to craftsmen, traders, building and construction trades, catering and hoteliers, etc. Indeed, each profession uses different management systems and bookkeeping with software requires adapted functionalities.

Accounting software adapted to the production sectors: this software integrates functions to manage supply, storage, management of the functioning of work teams, consumption of raw materials, etc. In general, when it comes to a large organization, the software should be tailor-made.

Billing software for small businesses: this is generally a feature found on all billing software. It allows you to manage invoicing, the preparation of quotes, collection, monitoring of unpaid debts, and of course the maintenance of company accounts.

Size of the company

Depending on the size of the business, here are some tips for choosing accounting software:

For very small companies (TPE): these companies generally only manage a simple monitoring of expenses and flows. They often use an accountant to prepare their financial statement at the end of the year. Thus, for the choice of accounting software, they could orient themselves towards standard software. They are very widespread and simply offer the preparation of invoices and quotes, as well as the accounting recording of day-to-day operations.

For small and medium-sized enterprises (SMEs): these companies have a little more complex accounting. In addition to invoicing, they must be able to calculate and declare VAT, and send the tax return. Standard software offers enough functionality to meet the needs of small businesses. On the other hand, it is recommended to check that there is the possibility of establishing the annual accounts and of managing the entire accounting process before making a choice.

For large companies: it is recommended, in the case of large companies, to ask a service provider to design the tailor-made accounting software. Large companies are indeed very diverse in their operations and it is very rare to find standard software that can adapt to the company’s accounting process.

What function and use?

In practice, you need to have an accountant in the company to manage the accounting. The tool can also be used by several departments. For example, the salesperson can use it for invoicing, the treasurer or cashier can use it for expense tracking, and the secretary can use it to store accounting records. It is therefore up to the accountant to summarize the data.

Skills required for use

It should be noted that for each user, the first skill to have is mastery of the computer tool and the software. It is therefore recommended to identify all users, train them in the use of the software and give them access to the software with different accounts.

Main features

The basic functionalities that you should find in your accounting software are:

  • Monitoring of expenses;
  • Keeping accounting documents;
  • The establishment and management of invoices and quotes.

These are general aspects common to all forms of accounting, regardless of the size and sector of activity of the company.

 

For more details, please visit: alfacybernetics.com

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